Can I Claim My Phone on Tax? (Australia 2026)

It's one of the most common questions we get here at Savings Mate, so let's clear it up! The short answer is yes, you can claim deductions for your phone and related internet costs, but there's a big catch: you can only claim the portion used for work.

The Australian Taxation Office (ATO) is very clear that you can't claim 100% just because you need it for your job. You must calculate the percentage of usage that is genuinely for work purposes. This applies to everything from work calls and emails to using your home internet for remote work. Understanding this work-use percentage is the most crucial step, so we recommend checking out our deduction calculator to get a rough estimate.

Don't assume the whole thing is deductible; always focus on proving the 'work-use' element, and you'll be on the right track for your 2026 tax return.

Calculating your work percentage might sound complicated, but it's straightforward once you know the rules. You have two main ways to approach this: a reasonable estimate or using detailed, itemised records. If you primarily use your phone for work calls and emails, a reasonable estimate (like 60% or 75%) is usually accepted by the ATO, especially if you can explain why that percentage is fair.

The key rule is the $300 threshold. If the cost of the phone itself is under $300, you can generally claim the full work percentage deduction in the year you buy it. However, if the phone costs over $300, you cannot claim the full amount immediately. Instead, you must claim it through depreciation over the phone's effective life, which is how assets are slowly written off over time.

If you're unsure how to apply depreciation, take a look at our guide on depreciation basics to save yourself some headaches next tax season.

It’s not just the phone itself; your monthly plan (calls, data, and texts) is also deductible. Again, you must apply your work-use percentage to the total monthly cost. For example, if your phone plan costs $80 per month, and you determine that 60% of that usage is for work, your deductible amount is $48 per month. Over a year, that’s $576. If you are in the 30% tax bracket, this deduction could save you approximately $173 in tax!

This calculation is much easier than it sounds. To claim this, you need to keep records of the plan costs and your rationale for the work-use percentage. Don't forget to consider data usage if you use your mobile data for work emails or cloud services. Accurate record-keeping is your best friend when dealing with the ATO.

If you're tackling multiple deductions, make sure to check out our annual deduction checklist to ensure you haven't missed anything.

When discussing larger tech purchases, remember the depreciation rule. If you buy a brand new $1,500 laptop or phone, you can't write off the full $1,500 immediately. You must spread that deduction over several years, following the depreciation schedule. This prevents you from claiming an unfairly large deduction in one year.

Similarly, if you work from home, you can claim a deduction for a portion of your home internet costs. This is done by estimating the percentage of your total household internet usage that is strictly for work. We recommend keeping a log or a sample bill showing your internet provider details. Always remember to keep all records—receipts, bank statements, and correspondence—for at least five years after the tax year ends. Good records are non-negotiable when dealing with the ATO.